I live in a monopoly area. My only choice for internet is comcast at 10/5mbps down up and it costs me 180 a month. Two blocks away fiber costs 40 a month.
Wait, so does a single company own all the cabling or something!? We have a despised-for-their-incompetence company called Openreach in Britain but the cables they manage cover almost the entire county and any ISP can use them.
There’s other options, but they’re all MUCH slower. If you want a different ISP with comparable or faster speeds, you need to move. In my case, internet is bundled with HOA fees. And there is no other fast option available at my address anyway.
Short simplified answer: nobody wants to pay for the infrastructure. Especially in the last mile. There’s probably a Planet Money episode about it. If not, there should be.
I’m guessing the ISPs aren’t forced to share their cables with other ISPs then?
Over here we have “fibre to the kerb” for people whose houses aren’t fully supported yet, meaning it’s fast fibre-optic cable all the way to somewhere near your house, then it uses your existing copper wires for the last bit. It’s not at fast as proper fibre-optic but still a lot better than old copper wires.
@Intensely_Human is correct. ISPs sign contracts with your city or county (depending on state/province laws) for a designated area. They are the sole provider of one type of Internet there. So you have one cable company and one phone line Internet company. The exception to this is the wireless companies that you buy your cell phone line from. Some cities may allow a second choice in one location but it’s not common outside the largest cities.
From the customer point of view, when you move in you are told what cable company serves your area. Then you have a choice of cable, phone line, satellite, or cell phone. Our government pretends that choice makes it not a monopoly.
Also, municipal run Internet is explicitly banned in many states. So if a town doesn’t like any of the options or no private company will serve the town, they cannot setup their own.
Those are actually just for show. We’ve let like 3 companies buy up all of our grocery stores too.
We’re finding out that anywhere our laws say the government can hold rich people accountable or rich people should do something it actually means they can just do whatever they want. Even the hard line laws like price collusion have gone unenforced for decades now. And now that there is an (a single) enforcement action, it’s a civil suit that’s not even threatening to cost them more than they made.
It’s not a full monopoly. You can choose another ISP, but it’s just that in practice you’d need to physically move to a new location to make that change of vendor.
Why are you bickering with me about it? I don’t appreciate people asking questions in bad faith just so they can make a spicy comment. Think I like it?
There are choices, it’s just they all suck unless you’re willing to move. Nobody’s arguing that it is a local semi-monopoly.
I’m not the guy you responded to, I’m just pointing out that it is a full monopoly. Which is important because part of the story they sell is that the ability to pay thousands of dollars in moving costs is a reasonable cost of switching providers. We’re never going to get the situation changed if we don’t acknowledge that it’s a full monopoly, complete with rent seeking.
I keep seeing comcast mentioned, why do you guys across the pond pay for a broadband service with a maximum download amount like it’s a 3G phone?
I live in a monopoly area. My only choice for internet is comcast at 10/5mbps down up and it costs me 180 a month. Two blocks away fiber costs 40 a month.
Wait, so does a single company own all the cabling or something!? We have a despised-for-their-incompetence company called Openreach in Britain but the cables they manage cover almost the entire county and any ISP can use them.
There’s other options, but they’re all MUCH slower. If you want a different ISP with comparable or faster speeds, you need to move. In my case, internet is bundled with HOA fees. And there is no other fast option available at my address anyway.
So why don’t other ISPs offer comparable speeds in the same location?
Short simplified answer: nobody wants to pay for the infrastructure. Especially in the last mile. There’s probably a Planet Money episode about it. If not, there should be.
I’m guessing the ISPs aren’t forced to share their cables with other ISPs then?
Over here we have “fibre to the kerb” for people whose houses aren’t fully supported yet, meaning it’s fast fibre-optic cable all the way to somewhere near your house, then it uses your existing copper wires for the last bit. It’s not at fast as proper fibre-optic but still a lot better than old copper wires.
@Intensely_Human is correct. ISPs sign contracts with your city or county (depending on state/province laws) for a designated area. They are the sole provider of one type of Internet there. So you have one cable company and one phone line Internet company. The exception to this is the wireless companies that you buy your cell phone line from. Some cities may allow a second choice in one location but it’s not common outside the largest cities.
From the customer point of view, when you move in you are told what cable company serves your area. Then you have a choice of cable, phone line, satellite, or cell phone. Our government pretends that choice makes it not a monopoly.
Also, municipal run Internet is explicitly banned in many states. So if a town doesn’t like any of the options or no private company will serve the town, they cannot setup their own.
That’s mental
Yup, America, eternally asking the question, “but what about my 10th super yacht?”
180!!! Wtf
In the US, ISPs are government-enforced monopolies.
What exactly does that mean? I thought you had anti-monopoly laws?
Those are actually just for show. We’ve let like 3 companies buy up all of our grocery stores too.
We’re finding out that anywhere our laws say the government can hold rich people accountable or rich people should do something it actually means they can just do whatever they want. Even the hard line laws like price collusion have gone unenforced for decades now. And now that there is an (a single) enforcement action, it’s a civil suit that’s not even threatening to cost them more than they made.
It’s not a full monopoly. You can choose another ISP, but it’s just that in practice you’d need to physically move to a new location to make that change of vendor.
That’s a full monopoly.
Why are you bickering with me about it? I don’t appreciate people asking questions in bad faith just so they can make a spicy comment. Think I like it?
There are choices, it’s just they all suck unless you’re willing to move. Nobody’s arguing that it is a local semi-monopoly.
I’m not the guy you responded to, I’m just pointing out that it is a full monopoly. Which is important because part of the story they sell is that the ability to pay thousands of dollars in moving costs is a reasonable cost of switching providers. We’re never going to get the situation changed if we don’t acknowledge that it’s a full monopoly, complete with rent seeking.
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Lol, we had 10-20MB/month packages with 3g…